In 2014, the gift limit established by the IRS was $14,000, claims Forbes. This is the maximum amount that can be given to an individual without being required to file a gift tax return.
The IRS also places a limit on the total amount a person can give in his lifetime, called the exclusion amount, which was $5,340,000, as of 2014. After the lifetime limit is reached, the individual giving the gift is subject to a tax of up to 40 percent, notes the IRS.
A gift is defined as anything with monetary value, including cash and property, according to the IRS. As a general rule, gift recipients do not have to pay taxes on the gifted amount. They may, however, have to pay state inheritance taxes.